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Tokyo stocks close up on fresh US-China trade optimism

Tokyo stocks closed higher on Friday as trade hopes were given a boost by US President Donald Trump's economic aide touting progress in talks with China.

The benchmark Nikkei 225 index finished up 0.70 percent, or 161.77 points, at 23,303.32 while the broader Topix Index climbed 0.73 percent, or 12.27 points, to 1,696.67.

The market took heart after White House adviser Larry Kudlow said that the long-awaited mini trade deal with China was on track as part of a wider pact.

"The deal is not complete but we've made enormous progress," he told reporters, adding that the talks were "coming down to the short strokes."

Kudlow's comments follow a week of unease about the much-vaunted talks, after Trump dismissed Chinese claims of a plan to roll back tariffs as the negotiations progress, while reports said Beijing was uneasy about some aspects of the developing deal.

Tokyo investors initially did not react to the news "but 30 minutes after the opening bell share prices started to edge up on Mr Kudlow's comments", Ryuta Otsuka, strategist at Toyo Securities, told AFP.

There were no other major market-moving events taking place during Friday trade, and some investors squared positions ahead of the weekend, he said.

The dollar fetched 108.59 yen, little changed from 108.58 yen in New York.

Electronics shares were among the winners, with Sharp rallying 3.47 percent to 1,725 yen, parts maker Rohm climbing 2.93 percent to 8,760 yen and Canon ending up 0.58 percent to 3,016 yen.

Chip-making equipment manufacturer Tokyo Electron ended up 2.27 percent at 22,745 yen and chip-testing equipment maker Advantest gained 1.48 percent to 5,450 yen.